In March 2022, the Government announced that one of the ways that it would support small business was through the Small Business Technology Boost. While this boost is still subject to law, it proposes that eligible small businesses will be able to deduct an additional 20% of the cost of expenses and depreciating assets that support ‘digital adoption’.

Therefore, a business with a turnover of less than $50m will be able to receive a $120 tax deduction for every $100 spent on ‘digital enabling items’ up to $100,000 per year.

These expenses include, but are not limited to:

• Computer hardware and software
• Portable payment devices
• Cyber security systems
• Subscriptions to cloud-based services
• Digital Media and Marketing
• eCommerce

For eligible expenditure incurred between 29th March and 30th June 2022, you claim the usual expenses in your 2022 tax return and the additional 20% in your 2023 tax return.

For expenses incurred between 1st  July 2022 and 30th June 2023, you can deduct the entire 120% in your 2023 tax return.

This boost is set to apply to eligible expenditure incurred between the 29th March 2022 and the 30th June 2023.

Please contact us with any queries.

Contributed by Kerryn Groves.